Coal terminals near New Orleans slowly reopening

Washington (Platts)--14Oct2005

TECO Transport's bulk terminal in Davant, La., resumed operations on Wednesday
after being damaged by Hurricane Katrina, parent TECO Energy Inc. said
Thursday.

The terminal south of New Orleans has been closed since Katrina, then a
Category 4 hurricane, hit the Gulf Coast on Aug. 29. The facility was without
power and its warehouses and coalfield had been flooded and the company
estimated it would take 30-45 days to reopen. 

"We have resumed unloading river barges and loading oceangoing vessels and are
looking forward to more normal operations in November," TECO ENERGY CEO John
Ramil said.

TECO said the terminal's river barge unloading equipment and one of its two
systems for storing materials and loading oceangoing vessels were working at
about 70% of normal. The second storage yard and handling system is still
being repaired.

TECO said 70 barges that had been stranded on levees have also been refloated.

However, Ramil warned that hurricanes Katrina and Rita would impact its
earnings for at least the last two quarters of 2005.

"TECO Transport's third quarter net income will reflect both lost business and
the direct costs of the hurricanes of about $6 million," Ramil said. "We
expect the fourth quarter results to reflect the restoration costs and effects
on the business primarily in October. We have wind and flood insurance on the
terminal, but not business interruption coverage."

He said the final amount of the claim would not be known until repairs are
completed and the terminal returns to full operation. 

TECO supplies its Tampa Electric utility with coal processed at the terminal.
Shipments to Tampa were resumed shortly after Katrina using floating cranes at
an alternate location upriver. The coal is brought by barge to the terminal,
processed and loaded on vessels, which take the coal to Florida through the
Gulf of Mexico.

Kinder-Morgan Inc.'s 12 million ton/year International Marine Terminal in
nearby Myrtle Grove, La., was operating at about 50% of capacity, spokesman
Rick Rainey told Platts Coal Trader Thursday. He said the terminal began
limited operations about three weeks ago, but it "will be several more weeks
until we're back to full service."

He said the IMT had no structural damage and all of the equipment was fine.
"Its been mostly salvage and clean up."

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